Crypto Will Integrate Deeper Into TradFi This Year, Wintermute Predicts

Cryptocurrency will become more deeply integrated into traditional finance this year through exchange-traded funds (ETFs) and corporate holdings, according to crypto-trading firm Wintermute.

In addition, a large corporate event such as an acquisition or merger will be settled in stablecoins, the market maker and liquidity provider said in its annual review and outlook.

Here are some of Wintermute's other institutional trading predictions for 2024:

The projections follow substantial demand growth last year, which saw over-the-counter (OTC) trading institutional trading volumes increase by more than three times following the approval of bitcoin (BTC) ETFs in January and the later launch of ether (ETH) ETFs. The report attributed the interest to improving regulatory clarity and demand for capital-efficient trading. The average OTC trade size increased by 17% while total volume increased by 313%.

Derivatives volumes increased by over 300%, as institutions sought more-sophisticated instruments for yield and risk management. In spot trading, Wintermute highlighted a record single-day OTC volume of $2.24 billion, exceeding the weekly record of $2 billion set in 2023.

Shift in asset preferences

Memecoins were among the highlights in 2024, with their market share more than doubling to reach 16%. This was largely driven by tokens in the Solana ecosystem such as dogwifhat (WIF), bonk (BONK) and ponke (PONKE), although ether continues to dominate.

“We saw record-breaking growth driven by demand for sophisticated products like CFDs and options, reflecting a maturing market that increasingly mirrors traditional finance,” CEO Evgeny Gaevoy said in the report. "We expect even greater momentum as crypto integrates deeper into the global financial infrastructure through ETFs, corporate holdings, tokenization and the rise of structured products."